Weekly news:

OIL & PETROCHEMICALS

CZECH REPUBLIC & SLOVAKIA

Czech retail fuel prices drop; top-selling Natural 95 down to CZK 23.87/liter

Czech oil processer Cepro CEO resigns to head Russian operations for oil/gas group MND

HUNGARY

Germany’s HVB boosts stake in Hungarian oil firm MOL to 16.3%

Hungarian retail gasoline prices to fall HUF 2 per liter this week; diesel down HUF 7

POLAND

Polish refiner PKN Orlen ready to complete purchase of minority stake in Lithuanian refinery

Lithuanian Cabinet to consider selling stake in Klaipedos Nafta to Polish refiner PKN Orlen

Lithuania, PKN Orlen to continue talks on refinery stake sale Friday

Polish fuel firm PKN Orlen, pipeline system operator PERN to build oil product pipeline

Polish refiner Grupa Lotos expects fuel sales to top production by 1.5 mln tonnes in 2008

Lithuania’s Cabinet approves sale of stake in refiner Mazeikiu Nafta to Polish refiner PKN Orlen

GAS

CZECH REPUBLIC & SLOVAKIA

Czech oil/gas group MND signs gas storage agreement with Russia’s Gazprom Export

PRESS: Nabucco gas pipeline remains a ’European fantasy’ - Czech energy envoy

HUNGARY

Hungarian local governments team up to buy gas from Emfesz at cheaper rate

UK’s Matra Petroleum sells Hungarian gas assets for USD 0.67 mln

POLAND

Polish gas monopolist PGNiG prepared for problems with Russian gas transit through Ukraine

Polish gas distributor CP Energia to buy LNG for PLN 3 mln from Russia’s Gazprom in 2009

Polish gas monopolist PGNiG likely to benefit from higher margins by the end-Q1 2009 – analysts

PRESS: Technical design of Polish LNG terminal to be ready in six months

Polish gas monopolist PGNiG sees decline of gas sales in Q4 2008

Polish gas monopolist PGNiG in talks with chemical ZA Pulawy on project outside Poland

Polish gas monopolist PGNiG unlikely to offer commercial storage services before 2012

Polish gas monopolist PGNiG eyes annual sales of 2 bln cbm of gas to electric energy sector

CORRECT: Gazprom to pay USD 20 mln to Polish-Russian Yamal gas pipeline operator EuRoPol Gaz

PRESS: Natural gas deposits in Poland estimated at 800-1,200 bln cubic meters

U.S.-based FX Energy set 2009 investment budget at approximately USD 23 mln

COAL

CZECH REPUBLIC & SLOVAKIA

Czech utility CEZ, equity group J&T submit joint bid for German coal miner Mibrag

Lignite miner Czech Coal Group completes restructuring, renames MUS mining unit

HEAT, POWER & SEWAGE

CZECH REPUBLIC & SLOVAKIA

Slovakia chooses Czech utility CEZ as strategic partner in EUR 4-6 bln nuclear plant expansion

Prague Energy Exchange to include Hungary-sourced electricity futures as of March 2009

Czech utility CEZ could save EUR 2.86 bln over 2013-2020 due to EC’s relaxed emissions targets

HUNGARY

Hungarian household electricity prices to rise by 2.9% from January 1

Hungarian power group MVM to reduce wholesale electricity prices by 7.6% as of January 1

Prague Energy Exchange to include Hungary-sourced electricity futures as of March 2009

POLAND

Poland allowed to ask in 2018 for transition period in implementation of EU’s CO2 scheme

PRESS: Poland could earn USD 1 bln on sale of surplus carbon emission rights

PRESS: Polish power grid operator PSE Operator to invest PLN 1.9 bln in 2009-2010

ALTERNATIVE ENERGY

POLAND

Polish renewable energy firm PEP signs agreement with Electrabel Polska to build wind farm

RUSSIA & CIS NEWS HIGHLIGHTS

Belarusian nuclear power plant to be built in Ostrovets near Lithuania – first deputy PM

Kyiv, Moscow reportedly guarantee continuous gas deliveries to EU

Russia to supply 21.5 bln cubic meters of gas to Belarus in 2009

Russian oil major Lukoil expects Q4 investment to total USD 2.5 bln

Russian oil major Lukoil’s net profit in 2008 may total USD 11 bln-USD 13 bln

Gazprom looking at several more inquiries about joining Nord Stream project

Ukrainian gas trader Naftohaz denies plans to leave outstanding Russian gas debt unpaid in 2008

Gazprom not planning to cut investment in 2009 – CEO

Ukraine pays part of Russian gas debt, will not pay more in 2008; supplies may be cut on Jan. 1

Russia’s gas monopolist Gazprom to build LNG terminal for 4 bln rubles in Kaliningrad

Russia may reduce oil production 1%-1.4% in 2008 – Energy Min.

Russia won’t declare intention to join OPEC at current session, wants permanent observer status

Russia could reduce oil exports by 16 mln tonnes in 2009 if prices do not change – Russian official

Gas negotiations with Ukraine again fail to produce significant progress – Russia’s Gazprom

Belarusian leader hopes to discuss gas supply issue with Russia

Russian oil major Lukoil may cut investment in 2010, reschedule projects abroad – CEO

Export duty on oil will be reduced to USD 119.1 for 1 tonne as of January – official

OPEC expects Russia to cut oil production by 200,000-300,000 barrels per day – Lukoil CEO

CALENDAR

CZECH REPUBLIC & SLOVAKIA

Czech Republic – calendar of upcoming events, 22-29/12/2008

Nb: This news report features only the headline of each news.

Agency Interfax